Spirit Airlines Stock (NYSE:SAVE), Trade Ideas

Spirit Airlines

Spirit Airlines Inc serves the United States, Latin America, and Caribbean as an airline operator. It primarily offers customers unbundled base fares to strip out any unneeded travel amenities. If needed, a customer can elect for additional options at an extra charge. Flight crews are entirely interchangeable across all aircraft, and maintenance and other support services are simplified due to not having an overly complex fleet. The company has one operating segment, air transportation, owing to its system wide route structure. It may decide to expand its network if a market is underserved or overpriced. The majority of revenue is derived from the United States.

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Despite a better-than-expected first-quarter EPS loss, JetBlue outlook remains bleak with declining sales and rising operating expenses.

JetBlue Airways Shares Witness Over 10% Drop On Disappointing Annual Outlook

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Airline stocks are moving higher Wednesday in sympathy with United Airlines Holdings, which reported better-than-expected financial results.

What&#39;s Going On With Airline Stocks Wednesday?

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U.S. stocks were higher, with the Dow Jones index gaining over 100 points on Monday.

Shares of  M&amp;T Bank Corporation (NYSE: MTB) rose sharply during Monday’s session after the company reported first-quarter financial results.

M&amp;T Bank Reports Q1 Earnings, Joins Snap One, Encore Wire And Other Big Stocks Moving Higher On Monday

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Spirit implements the latest technology by TA Connections, advancing bag scanning operations and increasing ramp efficiency

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JetBlue Airways Corporation&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/JBLU#NASDAQ">JBLU</a>) stock tumbled on Tuesday after the company&nbsp;<a href="https://www.benzinga.com/pressreleases/24/04/b38374287/jetblue-announces-first-quarter-2024-results" target="_blank" rel="noreferrer noopener">announced a gloomy outlook</a>.
The air carrier reported a first-quarter adjusted EPS loss of 43 cents. It beat the consensus loss of 52 cents, up from a loss of 34 cents a year ago.
The company reported sales of $2.21 billion, down 5% Y/Y, almost in line with the&nbsp;<a target="_blank" href="https://www.benzinga.com/calendars/earnings" rel="noreferrer noopener">consensus of $2.205 billion</a>. The first quarter of 2024 saw a 2.7% Y/Y decrease in capacity.
Operating expenses for the quarter increased by 14% to&nbsp;$2.9 billion, with operating expenses per available seat mile (CASM) rising by 17.1%.
Adjusted operating expenses decreased by 3.7% to $2.4 billion. Operating expenses per available seat mile, excluding fuel and other non-airline operating expenses, increased by 7.1% year-over-year.
Earlier this year, JetBlue announced the termination of a deal Monday to acquire Spirit Airlines Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SAVE#NYSE">SAVE</a>) for $3.8 billion, following a decisive legal blockade <a href="https://www.benzinga.com/markets/equities/24/03/37467988/spirit-airlines-ceo-says-we-are-disappointed-after-jetblue-deal-fails" target="_blank" rel="noreferrer noopener">by the Department of Justice</a>.
&#8220;As we look ahead in 2024, we are seeing positive momentum in our revenue growth. Demand during peak periods remains strong, and we continue to manage our capacity during off-peak periods to reflect evolving demand trends. We plan to continue to refine our network and product offering to better serve our leisure customers while diversifying revenues with margin-accretive initiatives,&#8221; said Joanna Geraghty, JetBlue&#8217;s president and chief operating officer.
Guidance:&nbsp;JetBlue said second-quarter revenue would drop as much as 10.5% in the second quarter of 2024. The carrier forecasts full-year 2024 sales would drop in the low single digits after estimating flat sales for the year in its fourth-<a target="_blank" href="https://www.benzinga.com/pressreleases/24/01/b36840357/jetblue-announces-fourth-quarter-2023-results" rel="noreferrer noopener">quarter earnings release</a>.
The Long Island City, New York-based company estimates the second quarter available Seat Miles to fall between (5.0%) – (2.0%) Y/Y and down low single digits for 2024.
Price Action:&nbsp;JBLU shares are down 11.5% at $6.64&nbsp;at the last check Tuesday.
Now Read: <a href="https://www.benzinga.com/news/earnings/24/04/38298704/alaska-air-group-q1-earnings-preview-attention-turns-to-boeing-safety-merger-with-hawaiian-airlines">Alaska Air Group Q1 Earnings Preview &#8211; Attention Turns To Boeing Safety, Merger With Hawaiian Airlines</a>

Citigroup analyst Stephen Trent maintains Spirit Airlines (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SAVE#NYSE">SAVE</a>) with a Sell and lowers the price target from $4 to $3.85.

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Citigroup Maintains Sell on Spirit Airlines, Lowers Price Target to $3.85

Airline stocks are moving higher Wednesday in sympathy with United Airlines Holdings Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/UAL#NASDAQ">UAL</a>), which reported better-than-expected <a href="https://www.benzinga.com/pressreleases/24/04/n38279693/united-airlines-announces-first-quarter-2024-financial-results-exceeds-revenue-and-eps-expectation">financial results</a>.
<ul>
<li>American Airlines Group Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAL#NASDAQ">AAL</a>)</li>
</ul>
<ul>
<li>Delta Air Lines Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DAL#NYSE">DAL</a>)</li>
</ul>
<ul>
<li>Southwest Airlines Co (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LUV#NYSE">LUV</a>)</li>
</ul>
<ul>
<li>JetBlue Airways Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/JBLU#NASDAQ">JBLU</a>)</li>
</ul>
<ul>
<li>Spirit Airlines Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SAVE#NYSE">SAVE</a>)</li>
</ul>
What Happened With UAL: United Airlines reported first-quarter revenue of $12.539 billion, which beat the <a href="https://www.benzinga.com/calendars/earnings" target="_blank" rel="noreferrer noopener">consensus estimate</a> of $12.4 billion, according to <a href="https://benzinga.grsm.io/gxjhpowx7zks" target="_blank" rel="noreferrer noopener">Benzinga Pro</a>. The company reported an adjusted quarterly loss 15 cents per share, which beat analyst estimates for a loss of 57 cents per share.
Capacity was up 9.1% year-over-year, TRASM (total revenue per available seat mile) was up 0.6% and CASM (cost per available seat mile) was down 0.6%. 
United Airlines reiterated expectations for full-year 2024 adjusted earnings of $9 to $11 per share versus estimates of $9.67 per share. The company also said it now anticipates 61 narrowbody aircraft and 5 widebody aircraft to be delivered in 2024, given the 737 Max grounding and production capacity constraints.
Earnings Calendar: American Airlines is set to report its first-quarter financial results before the market open on April 25. Analysts anticipate a loss of 29 cents per share and revenue of $12.602 billion. Southwest is set to report the same day. JetBlue will report earnings before the market open on April 23. Spirit is not due to report until early May. Delta reported quarterly results last week.
See Also: <a href="https://www.benzinga.com/markets/equities/24/04/38289104/bofa-foresees-s-p-500-soaring-19-by-august-2025-dont-lose-sight-of-the-secular-bull-market">BofA Foresees S&amp;P 500 Soaring 19% By August 2025: &#8216;Don&#8217;t Lose Sight Of The Secular Bull Market&#8217;</a>
Airline Stocks Price Action: <a href="https://www.benzinga.com/quote/UAL" target="_blank" rel="noreferrer noopener">United Airlines shares</a> were up more than 5% Wednesday morning. American Airlines was up about 1.77%, Delta was up 1.18%, Southwest was up 0.5%, JetBlue was up 1.38% and Spirit was up about 1.5%, according to <a href="https://benzinga.grsm.io/gxjhpowx7zks" target="_blank" rel="noreferrer noopener">Benzinga Pro</a>.
Photo: Fuzz from Pixabay

What's Going On With Airline Stocks Wednesday?

Analysts' ratings for Spirit Airlines (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SAVE#NYSE">SAVE</a>) over the last quarter vary from bullish to bearish, as provided by 6 analysts.
The following table encapsulates their recent ratings, offering a glimpse into the evolving sentiments over the past 30 days and comparing them to the preceding months.
<table>
<thead>
<tr>
<th></th>
<th style="text-align: right;">Bullish</th>
<th style="text-align: right;">Somewhat Bullish</th>
<th style="text-align: right;">Indifferent</th>
<th style="text-align: right;">Somewhat Bearish</th>
<th style="text-align: right;">Bearish</th>
</tr>
</thead>
<tbody>
<tr>
<td>Total Ratings</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">2</td>
<td style="text-align: right;">2</td>
<td style="text-align: right;">2</td>
</tr>
<tr>
<td>Last 30D</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>1M Ago</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">2</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>2M Ago</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>3M Ago</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">2</td>
</tr>
</tbody>
</table>
Insights from analysts' 12-month price targets are revealed, presenting an average target of $3.92, a high estimate of $4.00, and a low estimate of $3.50. Highlighting a 56.4% decrease, the current average has fallen from the previous average price target of $8.99. 
<img src="https://www.benzinga.com/files/images/story/2024/1713294209_0.png" alt="price target chart" />
<h2>Interpreting Analyst Ratings: A Closer Look</h2>
The perception of Spirit Airlines by financial experts is analyzed through recent analyst actions. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.
<table>
<thead>
<tr>
<th>Analyst</th>
<th>Analyst Firm</th>
<th>Action Taken</th>
<th>Rating</th>
<th>Current Price Target</th>
<th>Prior Price Target</th>
</tr>
</thead>
<tbody>
<tr>
<td>Helane Becker</td>
<td>TD Cowen</td>
<td>Lowers</td>
<td>Hold</td>
<td>$4.00</td>
<td>$5.00</td>
</tr>
<tr>
<td>Christopher Stathoulopoulos</td>
<td>Susquehanna</td>
<td>Lowers</td>
<td>Negative</td>
<td>$4.00</td>
<td>$5.00</td>
</tr>
<tr>
<td>Duane Pfenningwerth</td>
<td>Evercore ISI Group</td>
<td>Lowers</td>
<td>In-Line</td>
<td>$3.50</td>
<td>$18.00</td>
</tr>
<tr>
<td>Brandon Oglenski</td>
<td>Barclays</td>
<td>Announces</td>
<td>Underweight</td>
<td>$4.00</td>
<td>-</td>
</tr>
<tr>
<td>Stephen Trent</td>
<td>Citigroup</td>
<td>Raises</td>
<td>Sell</td>
<td>$4.00</td>
<td>$3.95</td>
</tr>
<tr>
<td>Stephen Trent</td>
<td>Citigroup</td>
<td>Lowers</td>
<td>Sell</td>
<td>$4.00</td>
<td>$13.00</td>
</tr>
</tbody>
</table>
<h3>Key Insights:</h3>
<ul>
<li>Action Taken: Analysts frequently update their recommendations based on evolving market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Spirit Airlines. This information provides a snapshot of how analysts perceive the current state of the company.</li>
<li>Rating: Offering a comprehensive view, analysts assess stocks qualitatively, spanning from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Spirit Airlines compared to the broader market.</li>
<li>Price Targets: Analysts provide insights into price targets, offering estimates for the future value of Spirit Airlines's stock. This comparison reveals trends in analysts' expectations over time.</li>
</ul>
Analyzing these analyst evaluations alongside relevant financial metrics can provide a comprehensive view of Spirit Airlines's market position. Stay informed and make data-driven decisions with the assistance of our Ratings Table.
<a href="https://www.benzinga.com/quote/SAVE/analyst-ratings?utm_source=Benzinga Insights">Stay up to date on Spirit Airlines analyst ratings.</a>
If you are interested in following small-cap stock news and performance <a href="https://www.benzinga.com/news/small-cap">you can start by tracking it here</a>.
<h2>About Spirit Airlines</h2>
Spirit Airlines Inc serves the United States, Latin America, and Caribbean as an airline operator. It primarily offers customers unbundled base fares to strip out any unneeded travel amenities. If needed, a customer can elect for additional options at an extra charge. Flight crews are entirely interchangeable across all aircraft, and maintenance and other support services are simplified due to not having an overly complex fleet. The company has one operating segment, air transportation, owing to its system wide route structure. It may decide to expand its network if a market is underserved or overpriced. The majority of revenue is derived from the United States.
<h3>Key Indicators: Spirit Airlines's Financial Health</h3>
Market Capitalization Analysis: The company exhibits a lower market capitalization profile, positioning itself below industry averages. This suggests a smaller scale relative to peers.
Revenue Growth: Spirit Airlines's revenue growth over a period of 3 months has faced challenges. As of 31 December, 2023, the company experienced a revenue decline of approximately -5.0%. This indicates a decrease in the company's top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Industrials sector.
Net Margin: The company's net margin is below industry benchmarks, signaling potential difficulties in achieving strong profitability. With a net margin of -13.89%, the company may need to address challenges in effective cost control.
Return on Equity (ROE): The company's ROE is below industry benchmarks, signaling potential difficulties in efficiently using equity capital. With an ROE of -14.99%, the company may need to address challenges in generating satisfactory returns for shareholders.
Return on Assets (ROA): Spirit Airlines's ROA falls below industry averages, indicating challenges in efficiently utilizing assets. With an ROA of -1.96%, the company may face hurdles in generating optimal returns from its assets.
Debt Management: Spirit Airlines's debt-to-equity ratio stands notably higher than the industry average, reaching 6.11. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.
<h2>The Core of Analyst Ratings: What Every Investor Should Know</h2>
Ratings come from analysts, or specialists within banking and financial systems that report for specific stocks or defined sectors (typically once per quarter for each stock). Analysts usually derive their information from company conference calls and meetings, financial statements, and conversations with important insiders to reach their decisions.
Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.
This article was generated by Benzinga's automated content engine and reviewed by an editor.

Unveiling 6 Analyst Insights On Spirit Airlines

TD Cowen analyst Helane Becker maintains Spirit Airlines (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SAVE#NYSE">SAVE</a>) with a Hold and lowers the price target from $5 to $4.

TD Cowen Maintains Hold on Spirit Airlines, Lowers Price Target to $4

U.S. stocks were higher, with the Dow Jones index gaining over 100 points on Monday.
Shares of M&amp;T Bank Corporation (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/mtb#NYSE">MTB</a>) rose sharply during Monday&rsquo;s session after the company reported <a href="https://www.benzinga.com/quote/MTB/earnings">first-quarter financial results.</a>
Revenue of $2.260 billion, slightly missing the consensus of $2.263 billion. EPS was $3.09, which came in line with the consensus, according to data from <a href="https://pro.benzinga.com/dashboard">Benzinga Pro</a>.
M&amp;T Bank shares surged 5.4% to $141.88 on Monday.
Here are some other big stocks recording losses in today&rsquo;s session.
<ul>
<li>Snap One Holdings Corp. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/snpo#NASDAQ">SNPO</a>) shares jumped 31.6% to $10.71 after the company announced that it will be acquired by Resideo Technologies.</li>
<li>Medical Properties Trust, Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/mpw#NYSE">MPW</a>) gained 19.9% to $4.7850 after the company announced that it sold its majority interest in Utah Hospitals.</li>
<li>SES AI Corporation (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/ses#NYSE">SES</a>) gained 18.7% to $1.77.</li>
<li>Mobile-health Network Solutions (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/mndr#NASDAQ">MNDR</a>) shares rose 17.7% to $17.67.</li>
<li>Yatsen Holding Limited (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/ysg#NYSE">YSG</a>) jumped 13.3% to $3.41.</li>
<li>Destiny Tech100 Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/dxyz#NASDAQ">DXYZ</a>) shares rose 12.8% to $32.71 after dipping 42% on Friday.</li>
<li>Encore Wire Corporation (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/wire#NASDAQ">WIRE</a>) jumped 11.7% to $291.60 after the company entered an agreement to be acquired by Prysmian for $290 per share in cash.</li>
<li>Century Aluminum Company (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/cenx#NASDAQ">CENX</a>) shares climbed 9.5% to $18.05.</li>
<li>BRF S.A. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/brfs#NYSE">BRFS</a>) gained 7.5% to $3.43 after JP Morgan upgraded the stock from Neutral to Overweight. Goldman Sachs analyst Thiago Bortoluci upgraded BRF from Sell to Neutral and raised the price target from $1.9 to $3.1.</li>
<li>Luminar Technologies, Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/lazr#NASDAQ">LAZR</a>) gained 7% to $1.3901. Luminar is expected to report financials for the first quarter of 2024 after the closing bell on Tuesday, May 7, 2024.</li>
<li>ProFrac Holding Corp. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/acdc#NASDAQ">ACDC</a>) gained 6.3% to $8.99. B of A Securities analyst Chase Mulvehill maintained ProFrac with a Neutral and raised the price target from $8.5 to $9.5.</li>
<li>Alcoa Corporation (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/aa#NYSE">AA</a>) surged 6% to $37.30.</li>
<li>Extreme Networks, Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/extr#NASDAQ">EXTR</a>) rose 5.7% to $11.31. B. Riley Securities analyst Dave Kang upgraded Extreme Networks from Neutral to Buy and maintained a $14 price target.</li>
<li>Spirit Airlines, Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/save#NYSE">SAVE</a>) surged 4.4% to $4.3612. Spirit Airlines said it expects a first-quarter FY24 revenue of about $1.265 billion against the previous estimate of $1.250 billion &ndash; $1.280 billion and the consensus of $1.273 billion.</li>
<li>Graphjet Technology (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/gti#NYSE">GTI</a>) rose 3.3% to $10.70.</li>
</ul>
&nbsp;
Now Read This: <a href="https://www.benzinga.com/news/24/04/38247378/this-analyst-with-86-accuracy-rate-sees-around-32-upside-in-western-digital-here-are-5-stock-picks-f"> This Analyst With 86% Accuracy Rate Sees Around 32% Upside In Western Digital - Here Are 5 Stock Picks For Last Week From Wall Street&#39;s Most Accurate Analysts</a>

M&T Bank Reports Q1 Earnings, Joins Snap One, Encore Wire And Other Big Stocks Moving Higher On Monday

Spirit Airlines Inc&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SAVE#NYSE">SAVE</a>) said it expects a first-quarter FY24 revenue of about $1.265 billion against the previous estimate of&nbsp;<a target="_blank" href="https://www.sec.gov/ix?doc=/Archives/edgar/data/0001498710/000149871024000151/save-20240415.htm" rel="noreferrer noopener">$1.250 billion &#8211; $1.280 billion and the consensus of $1.273 billion</a>.
The company also sees first-quarter capital expenditures of about $30 million, primarily related to expenditures related to the building of Spirit&#8217;s new headquarters campus in Dania Beach, Florida, and purchases of spare parts.
Also Read:&nbsp;<a target="_blank" href="https://www.benzinga.com//node/38144456" rel="noreferrer noopener">Navigating Turbulence: Spirit Airlines To Furlough Pilots Amid Aircraft Delivery Deferrals</a>
Spirit Airlines estimates it ended the first quarter of 2024 with $1.2 billion of unrestricted cash and cash equivalents and short-term investment securities and $300 million of liquidity under the company's revolving credit facility.
The company sees an adjusted operating margin for the quarter of (14.5)% &#8211; (13.5)% from the previous outlook of (15)% &#8211; (12)%.
On March 26, 2024, Spirit entered into an agreement with International Aero Engines, LLC (IAE), an affiliate of Pratt &amp; Whitney, pursuant to which IAE will provide Spirit with a monthly&nbsp;<a target="_blank" href="https://www.benzinga.com/news/24/04/38024550/spirit-airlines-stock-is-taking-off-monday-heres-why" rel="noreferrer noopener">credit through the end of 2024.</a>
The estimated impact of the agreement on Spirit's liquidity for the full year 2024 is currently expected to be between $150 million and $200 million.&nbsp;
Also See: <a href="https://www.benzinga.com//node/37454527" target="_blank" rel="noreferrer noopener">JetBlue, Spirit Airlines Scrap $3.8B Merger Agreement</a>
Price Action: SAVE shares are trading higher by 8.6% at $4.54 on the last check Monday.
Photo via Wikimedia Commons

Equities

What's Going On With Spirit Airlines Stock Today?

Spirit Airlines Estimates Total Capital Expenditures For Q1 2024 Were ~$30M; Sees Q1 2024 Adjusted Operating Margin Will Be Negative 14.5%t To Negative 13.5%

Spirit Airlines Estimates It Ended Q1 2024 With $1.2B Of Unrestricted Cash And Cash Equivalents

Spirit Airlines Sees Q1 Total Revenue ~ $1.265B Vs $1.27B Est

Susquehanna analyst Christopher Stathoulopoulos maintains Spirit Airlines (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SAVE#NYSE">SAVE</a>) with a Negative and lowers the price target from $5 to $4.

Susquehanna Maintains Negative on Spirit Airlines, Lowers Price Target to $4

Spirit Airlines, Inc.&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SAVE#NYSE">SAVE</a>)has reached an agreement with&nbsp;Airbus SE&nbsp;(OTC:<a class="ticker" href="https://www.benzinga.com/stock/EADSY#OTC">EADSY</a>) to defer all aircraft on order that are scheduled to be delivered in the&nbsp;<a target="_blank" href="https://www.benzinga.com/pressreleases/24/04/n38138593/spirit-airlines-announces-deferral-of-airbus-aircraft-deliveries" rel="noreferrer noopener">second quarter of 2025 through the end of 2026 to 2030-2031</a>.
The agreement is expected to improve Spirit&#8217;s liquidity position by approximately $340 million over the next two years.
The deferrals do not include the direct-lease aircraft scheduled for delivery in that period, one each in the second and third quarter 2025, respectively.&nbsp;
Meanwhile, there are no changes to the aircraft on order with Airbus that are scheduled to be delivered in 2027-2029.&nbsp;&nbsp;
Also Read:&nbsp;<a target="_blank" href="https://www.benzinga.com//node/37825277" rel="noreferrer noopener">Boeing&#8217;s Struggles Cast Shadows Across The Skies, Airbus CEO Reportedly Voices Concern&nbsp;</a>
Spirit also said it intends to furlough approximately 260 Pilots effective September 1, 2024.&nbsp;&nbsp;
This is due to the result of grounded aircraft due to Pratt &amp; Whitney GTF engine availability issues, along with the 2025 and 2026 aircraft deferrals.
Spirit&#8217;s recent compensation agreement with Pratt &amp; Whitney regarding its GTF engines is expected to improve Spirit&#8217;s liquidity between $150 million and $200 million over the term of the agreement.
&#8220;Deferring these aircraft gives us the opportunity to reset the business and focus on the core airline while we adjust to changes in the competitive environment," said President and CEO Ted Christie.
The company is scheduled to announce first quarter 2024 results before market open&nbsp;<a target="_blank" href="https://www.benzinga.com/calendars/earnings" rel="noreferrer noopener">on May 6, 2024.</a>
Related:&nbsp;<a target="_blank" href="https://www.benzinga.com//node/37467988" rel="noreferrer noopener">Spirit Airlines CEO Says &#8216;We Are Disappointed&#8217; After JetBlue Deal Fails</a>
Price Action: SAVE shares are trading higher by 3.61% at $4.59 on the last check Monday.
Photo via Wikimedia Commons

European Aeronautic Defence And Space Unsponsored

EADSY

Navigating Turbulence: Spirit Airlines To Furlough Pilots Amid Aircraft Delivery Deferrals

Pilots' Union Says Spirit Airlines Decision To Furlough Pilots Is "Deeply Troubling For Our Entire Pilot Group"

As a result of grounded aircraft due to Pratt &amp; Whitney GTF engine availability issues, along with the 2025 and 2026 aircraft deferrals, Spirit announced it intends to furlough approximately 260 Pilots effective&nbsp;September 1, 2024.&nbsp;As recently announced, Spirit entered into a compensation agreement with Pratt &amp; Whitney regarding its GTF engines, which is estimated to improve Spirit&#39;s liquidity between&nbsp;$150 million&nbsp;and&nbsp;$200 million&nbsp;over the term of that agreement. In addition, Spirit will continue to evaluate the use of its current financeable asset base to add additional liquidity over the coming months.&nbsp;&nbsp;

Spirit Airlines Intends To Furlough Approximately 260 Pilots Effective September 1, 2024

These deferrals do not include the direct-lease aircraft scheduled for delivery in that period, one each in the second and&nbsp;third quarter&nbsp;2025, respectively. The agreement with Airbus will improve Spirit&#39;s liquidity position by approximately&nbsp;$340 million&nbsp;over the next two years.&nbsp;&nbsp;There are no changes to the aircraft on order with Airbus that are scheduled to be delivered in 2027-2029.&nbsp;&nbsp;

Spirit Airlines Reaches Agreement With Airbus To Defer All Aircraft On Order That Are Scheduled To Be Delivered In Q2 Of 2025 Through The End Of 2026 To 2030-2031

WIIM

Shares of airline stocks are trading lower. The travel sector may be under pressure amid overall market weakness as Treasury yields rise, which has impacted discretionary stocks.

Spirit Airlines Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SAVE#NYSE">SAVE</a>) shares are flying Monday after the company entered into an agreement with International Aero Engines to provide Spirit with a monthly credit <a href="https://www.benzinga.com/startups/24/03/37677030/up-to-40-of-americans-fear-air-travel-and-boeings-issues-arent-helping-here-are-2-ways-to-try-to-avo">through the end of 2024</a>.
What Happened: Last year, Pratt &amp; Whitney announced that it had determined that a rare condition in the powdered metal used to manufacture certain engine parts would require accelerated inspection of the geared turbo fan (GTF) fleet.
Pratt &amp; Whitney notified Spirit that nearly all GTF engines in its fleet would be subject to the removal and inspection, or replacement, of the powdered metal impacted parts. As a result, Spirit removed related engines from service and grounded some of its aircraft for inspection requirements.
On March 26, Spirit entered into an agreement with International Aero Engines, an affiliate of Pratt &amp; Whitney, in which IAW will provide Spirit with a monthly credit through the end of 2024 as compensation for each Spirit aircraft unavailable for operational service due to GTF engine issues.
The estimated impact of the agreement on Spirit's liquidity is currently expected to be between $150 million and $200 million. 
Pursuant to the agreement, Spirit agreed to release IAE from claims related to the impacted engines prior to the end of the year. Spirit intends to discuss appropriate arrangements with Pratt &amp; Whitney for any Spirit aircraft that remain unavailable for operational service beyond 2024.
See Also: <a href="https://www.benzinga.com/news/large-cap/24/03/37911999/boeing-ceo-dave-calhoun-to-resign-in-2024-as-part-of-major-leadership-overhaul-eyes-of-the-world-a">Boeing CEO Dave Calhoun To Resign In 2024: &#8216;Eyes Of The World Are On Us&#8217; (UPDATED)</a>
SAVE Price Action: <a href="https://www.benzinga.com/quote/SAVE">Spirit Airlines shares</a> were up 5.25% at $5.08 at the time of publication, according to <a href="http://pro.benzinga.com">Benzinga Pro</a>.
Photo: <a href="https://commons.wikimedia.org/wiki/Category:Spirit_Airlines#/media/File:Spirit_Airlines_Airbus_A321_at_PHL.jpg">via</a> Wikimedia Commons.

Spirit Airlines Stock Is Taking Off Monday: Here's Why

Spirit Airlines shares are trading higher after the company entered an agreement with International Aero Engines to provide Spirit with a monthly credit through the end of 2024 as compensation for each Spirit aircraft unavailable for operational service due to GTF engine issues.

Financing

Spirit Airlines On March 26, Entered Into Agreement With International Aero Engines,, An Affiliate Of Pratt & Whitney; IAE To Provide Co With Monthly Credit Through End Of 2024 As Compensation For Each Aircraft Unavailable For Service Due To GTF Issues

Citi analyst Stephen Trent has maintained their bearish stance on SAVE stock, giving a Sell rating on April 9. Stephen Trent has given his Sell rat...

Sell Rating on Spirit Airlines Amid Financial Uncertainty and Recovery Concerns

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Spirit Airlines: The Spirit Is Gone, Time To Sell

An announcement from Spirit Airlines (SAVE) is now available. Dawn M. Zier, a board member at Spirit Airlines, has decided not to seek re-election ...

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<a href="https://investorplace.com">InvestorPlace - Stock Market News, Stock Advice &amp; Trading Tips</a>
A lot of well-known <a href="https://investorplace.com/stock-types/blue-chip-stocks/">blue-chip stocks</a> that previously dominated their respective industries are struggling this year. One need only look at the <a href="https://www.slickcharts.com/sp500/performance">year-to-date performance</a> of the benchmark S&amp;P 500 index to see many notable names deep in the red so far in 2024. Companies such as Nike (NYSE:<a href="https://investorplace.com/stock-quotes/nke-stock-quote/">NKE</a>), Starbucks (NASDAQ:<a href="https://investorplace.com/stock-quotes/sbux-stock-quote/">SBUX</a>), and Intel (NASDAQ:<a href="https://investorplace.com/stock-quotes/intc-stock-quote/">INTC</a>), just to name a few, continue to slide lower. The situation has only gotten worse as the <a href="https://www.cnbc.com/2024/04/18/stock-market-today-live-updates.html">entire market declines</a> to start the year&rsquo;s second quarter. 



While concerning, and no doubt frustrating for existing shareholders, the continued drawdown presents an opportunity for investors to take new positions in some great stocks at or <a href="https://www.investopedia.com/articles/investing/081415/look-buy-low-sell-high-strategy.asp#:~:text=Buy%20low%2C%20sell%20high%20is,and%20are%20difficult%20to%20predict.">near their 52-week lows</a>. Many of these top-shelf companies can be counted on to eventually rebound once their earnings strengthen, the operating environment improves, and market sentiment turns optimistic. In the meantime, investors have an opportunity to buy low in hopes of eventually selling high. 



Here are three blue-chip stocks to buy at a 52-week low in April. 



<h2>Apple (AAPL)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2022/01/shutterstock_1100496809-300x169.png" alt="Apple store. Apple Inc. (AAPL) sells consumer electronics, computer software, services and personal computers."><div>Source: Vytautas Kielaitis / Shutterstock.com</div></div>It seems strange to say, but Apple (NASDAQ:<a href="https://investorplace.com/stock-quotes/aapl-stock-quote/">AAPL</a>) is now trading right around its 52-week low, having declined nearly 15% on the year. AAPL stock is also negative over the last 12 months (down 0.01%), meaning it has erased all of its gains from the 2023 bull market. In what might be a bad omen for the company&rsquo;s upcoming earnings report on May 2, media reports tell us that CEO Tim Cook and other senior executives have <a href="https://www.barrons.com/articles/apple-stock-ceo-tim-cook-selling-a859bc86">sold more than $70 million</a> of company stock in April as the share price has steadily fallen. 



CEO Cook has sold $33.3 million of Apple stock so far in April at an average price of $169.33 per share. Cook sold AAPL stock 12% below its peak of $192.53 reached in December 2023. At the same time, Apple Chief Operating Officer Jeff Williams, Chief Financial Officer Luca Maestri, and Deirdre O&rsquo;Brien, Senior Vice-President of Retail, also sold <a href="https://www.baystreet.ca/techinsider/4208/Apple-CEO-Tim-Cook-And-Other-Top-Executives-Sell-Company-Stock">millions of dollars of Apple stock</a>. This as International Data Corp. (IDC) reports that Apple&rsquo;s iPhones shipments in the first quarter fell 9.6% from a year ago.



Also weighing on AAPL stock is the Department of Justice&rsquo;s <a href="https://www.justice.gov/opa/pr/justice-department-sues-apple-monopolizing-smartphone-markets">antitrust case</a> against the technology giant, alleging that it violated federal law to preserve its position in the smartphone market. While there&rsquo;s currently a buying opportunity with Apple&rsquo;s stock, it might get even better after the company&rsquo;s Q1 print in a few weeks. 



<h2>Boeing Co. (BA)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2023/02/shutterstock_1212299986-300x169.jpg" alt="BA stock: a blue and white Boeing 787 flying in the sky above the clouds"><div>Source: vaalaa / Shutterstock</div></div>For investors with a long time horizon, there is embattled airplane manufacturer Boeing Co. (NYSE:<a href="https://investorplace.com/stock-quotes/ba-stock-quote/">BA</a>). Having fallen 35% since January, BA stock is not only at a 52-week low, but is currently the third worst performing company in the S&amp;P 500 index this year. Only Tesla (NASDAQ:<a href="https://investorplace.com/stock-quotes/tsla-stock-quote/">TSLA</a>) and Globe Life (NYSE:<a href="https://investorplace.com/stock-quotes/gl-stock-quote/">GL</a>), which has been <a href="https://www.fool.com/investing/2024/04/17/billionaire-warren-buffett-recently-eliminated-thi/">accused of fraud</a>, have performed worse than Boeing. However, while down, Boeing is likely to be far from out-given that it is one of only two major commercial aircraft manufacturers in the world. 



Still, the pain for Boeing shareholders is likely to get worse before it gets better. The latest bad news is that airplane deliveries plunged in Q1 to their lowest level since the Covid-19 pandemic in 2021. Boeing has faced increased safety reviews by the Federal Aviation Administration (FAA) after a door plug blew off one of its 737 Max 9 airplanes in January. Consequently, Boeing <a href="https://www.cnbc.com/2024/04/09/boeing-airplane-deliveries-drop-during-q1-amid-safety-crisis.html">delivered 83 new airplanes</a> to customers in Q1, down 47% from 157 deliveries in the previous quarter.



As with Apple, Boeing&rsquo;s stock <a href="https://www.tipranks.com/news/article/boeing-stock-the-best-horror-show-on-wall-street">could drop further</a> after the company reports its Q1 financial results on April 24. But for long-term investors, the current share price decline could be a solid buying opportunity. 



<h2>Spirit Airlines (SAVE)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2019/12/spirit_airlines_save1600-300x169.jpg" alt="A yellow, Spirit Airlines (SAVE) branded airplane flying in the air"><div>Source: Markus Mainka / Shutterstock.com</div></div>Another aviation stock that is right near its 52-week low and struggling right now is Spirit Airlines (NYSE:<a href="https://investorplace.com/stock-quotes/save-stock-quote/">SAVE</a>). Down 75% on the year, SAVE stock is now trading under $5 a share, putting it in penny stock territory. The steep selloff comes after JetBlue Airways (NASDAQ:<a href="https://investorplace.com/stock-quotes/jblu-stock-quote/">JBLU</a>) pulled out of a deal to purchase the discount carrier for $3.8 billion, and amid a Pratt &amp; Whitney engine recall. Spirit Airlines announced that it is <a href="https://abcnews.go.com/Business/wireStory/spirit-defer-airbus-plane-deliveries-furlough-260-pilots-108996445">deferring new aircraft purchases</a> and laying off 260 pilots as it struggles with a liquidity problem.



While not without risk, SAVE stock could be worth a gamble now that its stock has fallen so much and is trading near rock bottom prices. The company appears to be doing all it can to conserve cash and improve its liquidity. Specifically, Spirit Airlines is deferring all aircraft orders, pushing them out as far as 2031. The budget airline is also furloughing the pilots. The combined moves will <a href="https://fortune.com/2024/04/08/spirit-airlines-furlough-pilots-delaying-jets-liquidity/">boost its liquidity</a> by about $340 million over the next two years. And who knows, in that time another buyer may emerge for Spirit Airlines. 



On the date of publication, Joel Baglole did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
<div>Joel Baglole has been a business journalist for 20 years. He spent five years as a staff reporter at The Wall Street Journal, and has also written for The Washington Post and Toronto Star newspapers, as well as financial websites such as The Motley Fool and Investopedia.</div><h3>More From InvestorPlace</h3>
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The post <a href="https://investorplace.com/2024/04/3-blue-chip-stocks-to-buy-at-a-52-week-low-in-april/">3 Blue-Chip Stocks to Buy at a 52-Week Low in April</a> appeared first on <a href="https://investorplace.com">InvestorPlace</a>.

3 Blue-Chip Stocks to Buy at a 52-Week Low in April

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